The profitability of an investment project will decrease if
a. tax rates decrease.
b. real interest rates increase.
c. real interest rates decrease.
d. business tax deductions increase.
b
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If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) unit elastic.
Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities. C) Decreasing the ratio will increase excess reserves. D) Increasing the ratio will decrease the amount of reserves banks have to loan.
Given the graph shown, the quantity that would be associated with the price of $4 in a supply table would be:
A. 2. B. 8. C. 6. D. 4.
Briefly explain and provide an example of how marginal willingness to pay relates to consumer surplus
What will be an ideal response?